We have explained that a number of tools and calculators that help us to know how much we pay for our mortgages knowing certain information, such as the initial amount granted, the time for repayment and the interest rate.

Let’s see now a number of cases in which calculators can help us. To perform the calculations we use the calculators can be found online on the page of any bank.
Use mortgage calculators to compare mortgages

Before deciding on a mortgage, we should compare well with all possible options. With the tool for calculating monthly payments, we know which mortgage is most favorable to our interests. However, we must not forget to take into account opening fee for if varies greatly from one institution to another may be the choice of the lower fee is not always correct.
Use mortgage calculators to switch our mortgage lender

Once we have checked with the calculators that shares of the new entity are more beneficial, we calculate the amount we save on the total loan period, and subtracting the amount of commission of subrogation of the mortgage. If this commission still paying the balance is positive, it would be good idea to change our mortgage bank, or negotiate better terms with the current client to remain.
Use mortgage calculators to calculate the partial repayment savings

When we advance a number of what remains to pay our mortgage, we can easily reduce the time maintaining the same rates or reduce the monthly holding period. The calculators will tell us how much shortening the deadline for a given amount repayable (expressed in years and months) or how much we save each month in fees if we keep the term.

Normally, it is more the former, reducing the time maintaining the same rates, since it saves more than in the second, reducing the monthly holding period, being less subject to the time the mortgage interest payments.

Here also will be important to the quantities that we charge for partial cancellation fee.
Example of using mortgage calculators to calculate the partial repayment savings

Here is an actual example using the calculator to write-downs of a well known financial institution:
Outstanding Capital 33,703.54
171.09 Monthly
Shares outstanding 429
5.106% Current interest

As we see, the mortgage was constituted 40 years. The borrower, as their financial situation is good, he decides to partially repay the mortgage with a savings of 6000 € at its disposal. Consider the two options you have:
1. Reduce the time and keep the same share

The new location will be:
Capital pending amortization 27,752.30
Monthly 171.09 (we keep the same)
Shares outstanding 276
Total amount to settle 6032.40

(Here are included the interest due the month in which we are until the day of redemption and the partial cancellation fee).

Therefore, with these savings get € 6032.40-time payment of 153 months, ie 12 years and 273 days. In those months we had paid 153 x € 171.09 = € 26.176.77 (provided the interest is fixed). That is, we saved € 20,176.

Actually, we should value those future monthly capital to date, and to discount the influence of interest rates. The capital is always compared to the same point in time so that comparison is correct. That is, as not worth 100 € to 100 € today in 10 years. But to show that the savings that we assumed a partial write is attractive, that cancellation fees are not to influence the decision, and to reduce time is better than lower fee, the calculations are valid.

Finally, to note that although these 6000 € to repay rent will stop in the future, we assume that the cumulative return we get to the end will be lower than the interest we pay, because as a rule, the interests of a loan over its lifetime are greater than the return on that capital over the same period. Otherwise, banks would invest all the money instead of lending it.
2. Reduce the fee and keep the term
Outstanding Capital 27,752.30
140.63 Monthly
Shares outstanding 429
Total amount to settle 6081.82

(Here are included the interest due the month in which we are until the day of redemption and the partial cancellation fee).

In the time remaining, we will pay 429 x € 140.63 = € 60,330.27. If we had not depreciated, would have to pay € 429 x 171.09 = 73397.61. The difference is € 13.067.34

As we see, the committee for partial repayment is very low (about 1%), and does not affect too much on the decision to write off or not. If this money really have it as surplus, it is worth amortization. And with the calculations show that the best option when we can maintain the current quota period will be to reduce, as the final savings is far superior to that achieved if we reduce quota.

It is very important to prepare a payment plan that meets the requirements of the lender, which also is within your means.

You need to bear in mind certain factors when developing the plan:

* Negotiate the interest rate: The negotiation of interest rates on your payment plan can save you money. Get serious while attempting to negotiate but not to overdo it.
* If you do not have enough money, here are some ways in which you can negotiate your debts:
or direct deposit into a savings account: This means asking your bank to make an automatic transfer from your account to another savings account. Let this money and when you accumulate a considerable amount of money saved canceled one of your debts through negotiation.
o The old resources may be helpful: Use savings accounts savings accounts, stocks, bonds, funds and any other type of investment. On reaching the negotiation process with money.
or pension and insurance plans: The penalties for taking money from your pension plan or insurance are less than ruin your financial records.
or Use your possessions: Use your most valuable possessions during times of crisis. If you have any valuable asset sell them to raise funds. The money will be very important in negotiating your debts. If you have many possessions and ask for a negotiation of your debt, the creditor can sue to get the full amount of the debt without any cuts.

Many families, especially those who get monthly income, they run into trouble when it comes to managing money to pay the expenses for the entire month, until reenter income at home the following month. We then say that is not reached this month. There are many expenses that must be addressed (mortgage, car, food, transportation, schools, etc).
Can we do something to avoid these economic burdens?

Without attempting now to be wizards of finance or give fantastic recipes, we describe some aspects that can help us improve our situation.

Obviously, the main solution would be to increase revenue and lower costs.

As for increasing revenues, will be something in the medium term, and may go through trying to improve our technical or academic training to try to improve our jobs and our wages, or find another job with better economic conditions.

The second part, to reduce expenditure, we can implement more effectively and immediately.
Draw up a monthly budget

Our plan goes through make a monthly budget.

Even if we think we control the costs, having a plan and carry it out scrupulously help us much.

First, will the total family income. If income is variable, will an average amount prudent not excessive.

As for fixed costs, we must take into account that are inexcusable and must be paid: electricity, water, telephones, gas, mortgage and other loans, neighborhood community, food, transportation to work or school runs. We will add these expenses and that amount will be untouchable.

If on something, we’ll leave for variable expenses. This remnant will use it only for unforeseen unavoidable: drugs, school materials, etc. Try not to spend just to see if we are more at ease.

There are many ways to stretch this money for nonessential expenses. We leave the coffee bar and take it at home (20 days of coffee = 24 €), breakfast not out (20 days x 3 € = 60 €), leave the car at home and cycling to work (saves time, money and stress), or using public transport with their subscriptions. We can buy food at the cheapest. And going out to dine out at the end of the month, when we see that we have a little extra money. We can also try to reduce fixed costs, such as consumption of light: is it really necessary to have the air conditioning to 16 degrees? It is not even healthy. Or heat in winter to 26 degrees to go home in short sleeves? Perhaps we can have at 21 degrees, and go with our very comfortable robe. If we put energy saving light bulbs, save on the bill within the year. Is it necessary to speak both the phone? We’ll have to get a monthly ceiling and talking just enough. Putting the washer fills and using sprays on faucets also uses less water.

But the main expense faced by households is mortgage payments. Many times, your payment is almost all of our income. And people keep mortgages because the rental market does not offer much cheaper prices than mortgages. Solving this is not in our hand, but there is some way to soften the economic bleeding.

In cities, many people have traditionally gone to live in the surrounding villages, towns born the familiar bedroom. There are cheaper houses, although their prices are still soaring. In cities like Madrid or Barcelona, prices of apartments in the suburban municipalities are not very affordable. But in other provinces, you can still save a lot on housing if you’re willing to live 40 minutes away by car. You can save up to half, what will be a great relief payments in the future. And another option is to seek work in areas with cheaper housing (there are provinces with more affordable housing than others).

In short, make a budget with expenditures inexcusable and leave the rest for contingencies. Also, try to minimize the consumption of electricity, water, telephones, gasoline, bars and restaurants, etc..